This is our third post on the site, and the third featuring FTX founder and CEO Sam Bankman-Fried. I see where this is going. He's 29, a billionaire, and poised to dominate the next few decades as the world reorients itself, so probably not the worst horse to latch onto.
Anyway, Mr. - Fried, hot off doling out free money (and ergo accounts) to Miami Heat patrons (are there really fans other than Jimmy Buffett?) over weekend, came out scorching hot on Twitter at Treasury Secretary Janet Yellen, who is so excitable she yells "PRUDENCE!" when she cums. Except she doesn't yell it, she says it in a monotone drawl that could put Yosemite Sam into a sublime lull.
Anyway, Yellen appeared on State of the Union this weekend. Speaking to the 14 DC-based Lefterners who watch SOTU with Jake Tapper, Yellen picked up the Liz Warren mantle, arguing, I think, in favor of taxing unrealized capital gains:
US Treasury Secretary, Janet Yellen, suggests imposing a tax on unrealized capital gains.
— Mr. Whale (@CryptoWhale) October 25, 2021
This means stock gains will be taxed even when they have not been sold.
It also means that taxes will be owed when the value of a home appreciates, even though it has not been sold. pic.twitter.com/H4ObEgZURe
Not sure Yellen even believes what she's saying here.
PRUDENCE!
Prudence.
Pru. Dence.
Zzzzz.
Anyway, Sam is now a billionaire, so he has a large dog in this race and thoughts on this concept, which is, to be clear, anti-capitalist and insane:
The biggest problem with taxing unrealized gains:
— SBF (@SBF_FTX) October 25, 2021
Let's say you start a company, and it starts doing well.
The market value of the equity you have goes up.
You owe tax on it.... way more than your cash.
So you're *forced* to sell any time it goes up to get $ to pay tax. https://t.co/MXX7XAkaWp
This would lead to a world where ownership of all companies was constantly churning because any time a company does well, the equity holders have to sell out to generate cash to pay tax on their gains.
— SBF (@SBF_FTX) October 25, 2021
God dammit he's smart.
That's probably the best counter to the "EAT THE RICH by taxing them on money they don't have" argument these eyes hath ever seen.
If you really want to stop the borrow-against-equity game played by the rich, maybe put some limits or a tax on the amounts they can borrow against their holdings, like I'm doing, to fund this site.
Oh wait, that's interest rates, which Yellen and Jerome Powell have spent the last decade pinning to the floor.
PRUDENCE!
